In the U.S. and in many other countries, CBD (cannabidiol) products can be legally purchased from brick-and-mortar retailers or online. While it may be technically legal for pilots and aviation professionals to use CBD products, they do so at great risk to their certificates and careers; a positive drug test result always precipitates an enforcement investigation by the FAA—first a letter of investigation (LOI) from the FAA’s Drug Abatement Division, and ultimately an emergency certificate action revoking certificates.
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The moral(s) of this story:
1. When acquiring an aircraft, each party should know exactly with whom it is dealing. Who are the real parties in interest? Who is the seller? Who is the buyer/end user?
2. Whether you are a seller or a buyer, if you engage a broker, insist upon a written brokerage agreement clearly setting forth the commission and compensation that the broker will receive upon completion of the transaction.
3. If you are a buyer, before you execute any letter of intent leading up to the negotiation of an aircraft sales and purchase agreement, perform a title search of the aircraft. If the letter of intent is addressed to anyone other than the registered owner of the aircraft, STOP!
4. If you are a seller, know who your customer and ultimate end user are. Given possible foreign export controls and concerns over international money laundering, this is essential for the seller’s legal protection.
5. Ensure that the aircraft sales and purchase agreement are between the registered owner of the aircraft and the ultimate end user. Making sure that the real parties in interest are at the bargaining table not only ensures transparency but may be required given those concerns set forth in Paragraph 4 above.
6. While there may be some circumstances in which a back-to-back transaction may be appropriate, closely examine whether these circumstances outweigh the risks.
Read MoreU.S. Court of Appeals Holds that National Transportation Safety Board's Communications with interested Outside Parties are "Intra-Agency" and not Releasable under the Freedom of Information Act
In 2011, a helicopter crashed while on a sightseeing tour in Hawaii, killing the pilot and all four passengers. The helicopter was operated by a US company. The helicopter and its engine were manufactured by French companies.
The accident was investigated by the National Transportation Safety Board (“NTSB”), an independent US Government agency charged with the investigation of civil aviation and other transportation accidents. The agency conducts fact finding proceedings to determine probable cause and issue safety recommendations. Since its creation in 1967, the NTSB has investigated thousands of accidents and the NTSB process is regarded worldwide to be nothing less than the “gold standard” in accident investigation.
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